Hanford Mission Essential Services Contract (HMESC) … Tours/HMESC Pre...Hanford Mission Essential Services Contract (HMESC) Draft Request For Proposal Pre-SolicitationConference

Hanford Mission Essential Services Contract (HMESC)Draft Request For Proposal Pre-Solicitation Conference

SOL No. 89303318REM000007

www.energy.gov/EM 1

Office of Environmental Management (EM)EM Consolidated Business Center and Office of Hanford Acquisitions

December 13, 2017

http://www.energy.gov/EM

Agenda

www.energy.gov/EM 2

*Please note that times are approximate, schedulewill be adjusted as needed *

0800 Opening Remarks – Karen Flynn, OHA/Norbert Doyle, EM-5.2

0805 Background of Hanford Site, Acquisition History, HMESC Purpose – Karen

Flynn, OHA

0810 Pre-Sol. Activities Logistics/Ground Rules, Overview of Acquisition Process &

Draft RFP Sections – Lori Sehlhorst, EMCBC

0915 Section C, Performance Work Statement – Angie Ensunsa, OHA

1015 Contractor Human Resources Management Requirements – Joyce Gilbert, RL

1045 Break

1100 Overview of Remaining Draft RFP Sections – Lori Sehlhorst, EMCBC/Ben

Lindholm, OHA

1130 Questions and Answers

1230 One-on-One Sessions begin


Opening Remarks

Karen FlynnProgram Manager, OHA

Norbert DoyleAssociate Deputy Assistant Secretary, Officeof Acquisition and Contract ManagementEM-5.2

www.energy.gov/EM 3


www.energy.gov/EM 4

Background of Hanford Site, Acquisition History, and

HMESC Purpose

Karen FlynnOffice of Hanford Acquisition


Hanford Site

www.energy.gov/EM 5

• Hanford played a pivotal role in the nation’s defense for more than 40 years, beginning in the 1940s with the Manhattan Project.

• Approximately 580 square miles.

• Located along the Columbia River in Southeastern Washington State.

• A plutonium production complex with nine nuclear reactorsand associated processing facilities.

• Today, under the direction of DOE, Hanford is engaged in the world’s largest environmental cleanup project, with a number of overlapping technical, political, regulatory, financial, and cultural issues.


Hanford Site

www.energy.gov/EM 6


EM Acquisition History

www.energy.gov/EM 7

Current Mission Support Contract

• Mission Support Alliance (MSA), LLC.

• MSA is comprisedof the following partner companies:

Leidos, Jacobs, and Centerra Group.

• Approximately $3.2 billion, Cost-Plus-Award-Fee (CPAF) Contract.

• Expires May 25, 2019, including options.

• A link to Mission Support Contract is posted on the procurementwebsite under the “Documents Library” tab, or may be found at www.Hanford.gov.


HMESC Purpose

DOE & other Hanford Site Contractors Focused on Cleanup

HMESC - Customer Focused Delivery of Infrastructure & Site Services

Infrastructure & Site Services

• Security & Emergency services• Information Management• Business Services

• Utilities• Real estate and Property Stewardship• Other Infrastructure/Services

Infrastructure Reliability Projects

Hanford Site Benefit Plan and Legacy Benefit Plans

DOE Small Business Procurement Support

HMESC - focused exclusively on Infrastructure & Site Service delivery to DOE and mission contractors:

• Allows mission contractors to concentrate solely on clean-up.

• Provides visibility of Infrastructure & Site services with effective cost oversight by DOE.

• Affords the ability to right-size (optimize, upgrade and turn-off); adjusting Infrastructure & Site services to meet critical mission needs.

8

www.energy.gov/EM 9

Purpose of Pre-Solicitation Conference, Logistics/Ground Rules,

Overview of Acquisition Process, and Draft RFP Sections

Lori SehlhorstContracting Officer

EM Consolidated Business Center


Purpose of Pre-Solicitation Conference

www.energy.gov/EM 1010

• Early engagement with interested parties to highlight information regarding the Draft RFP.

• Identify and resolve concerns regarding the contentsof the Draft RFP, including:

Feasibility of the requirement definition,

Suitability of the proposal instructions andevaluation criteria,

Availability of reference documents, and

Other industry concerns or questions.


Logistics/Ground Rules


• No audio or video recording permitted.

• Questions should be submitted via the notecardsprovided.

• DOE may attempt to answer questions during thepre-solicitation conference today, time permitting.

• Comments may also be submitted to the procurementemail address at [email protected] for DOE’sconsideration in preparing the Final RFP.


mailto:[email protected]



• Nothing stated or presented during this conferenceshould be construed as a revision to the Draft RFP.

• Today’s briefing slides and the attendee list will beposted on the procurement website.

• The written terms and conditions of the Final RFP, oncereleased, will govern over information presented today.

• Information provided today is at a summary level andsubject to change.




One-on-One Sessions

• The focus of the one-on-one sessions is to discuss the recently issued HMESC Draft RFP, 89303318REM000007 as well as the alternate cost model material recently posted for industry input.

• Other procurements still being finalized within DOE will not be discussed during these one-on-one sessions.

• Meetings will not be more than 35 minutes.

• Opportunity for interested parties to present their thoughts andsuggestions on the procurement.

• There will be no negative ramifications for a firm choosing not toparticipateor cancelling their scheduled time.

• DOE is not requesting and will not accept company marketing material.


Acquisition Process


CO Preliminary OCI Analysis released to industry October 17, 2017.

Provided potential Offerors an early opportunity to review the preliminary OCI analysis as it relates to the PWS, understand how it might affect their teaming arrangements, and allow them the opportunity to provide early feedback to DOE. Industry is encouraged to comment on the CO’sPreliminary OCI analysis by January 8, 2018.

Draft RFP released to industry November 21, 2017.

Industry is encouraged to comment on the Draft RFP (with the exception of the cost models) by January 8, 2018.

Alternate Cost Model released to industry December 12, 2017.

Industry input for the cost models (cost model in DRFP and alternate cost model) is requested by January 19, 2018.


Acquisition Process


Interested parties should submit questions/comments/input for DOEconsideration to the following email address: [email protected].

Comments shall be submitted in the Microsoft Excel format provided on the procurement website (please do not edit the format with theexception of adding rows as needed).

DOE will carefully consider comments/input received in response to theDraft RFP as well as the Alternate Cost Model in preparing the Final RFP.However, DOE is not required to officially respond to verbal or writtenquestions or comments pertaining to the Draft RFPor the Alternate Cost Model.

DOE intends to respond to individual inquiries submitted regarding the CO Preliminary OCI analysis. DOE also intends to post a CO Final OCI analysis in advance of the Final RFP.



Acquisition Process


• HMESC Draft RFP incorporates identified process improvements from the EM Acquisition Initiatives following the 2016 Acquisition Workshop:

1. Streamlining Cost Proposals,

2. Improving Past Performance Evaluations, and

3. Increasing Small Business Involvement.

• EM is attempting to gain consistency across procurement actions in these identified areas, including streamlining initiatives where possible.

• EM is continuing to be as transparent and collaborative as possible with industry regarding these initiatives.

• Primary takeaway for industry is to understand these initiatives, look to identify these items in Draft RFPs, and provide feedback to the procurement teams.

• At the September 2017 EM Acquisition Workshop an update to these initiatives was presented. A copy of the 2017 workshop presentation will be posted to the HMESC website (Pre-Sol. tab) for reference.


Acquisition Process


The Final RFP is anticipated to be issued in Spring 2018.

• Once the Final RFP is issued, interested parties shouldsubmit questions/comments to email address: [email protected]

• DOE will post questions and answers, without attribution, to the procurementwebsite at: https://www.emcbc.doe.gov/SEB/HMESC/



https://www.emcbc.doe.gov/SEB/HMESC/

Procurement Website

https://www.emcbc.doe.gov/SEB/HMESC



Acquisition Process


• Industry will have 60 calendar days from the date the Final RFP isreleased to prepare and submit a proposal to DOE.

• The proposal shall consist of three separate volumes:

Volume I – Offer and Other Documents.

Volume II – Technical and Management Proposal.

Volume III – Cost and Fee Proposal.

• Minimum Proposal Acceptance Period will be 547 calendar daysafter due date for receipt of proposals.

• Government intends to award a contract without discussions, asstated in Sections L and M of the RFP.

• Full and Open Competition under NAICS Code 561210,Facilities Support Services, Small Business Size Standard of$38.5 million.


RFP Overview


• Sections A – J of the Final RFP will become theresultant contract.

• Section K will be incorporated by reference into thecontract.

• Section L contains the proposal preparationinstructions.

• Section M sets forth the basis for evaluationand method for award.



Section BSupplies or Services and Prices/Costs




Section B Overview


B.2. Cost-Plus-Award-Fee andIndefinite Delivery/Indefinite Quantity (IDIQ) type CLINs

Table B-1. Contract CLIN Structure

CLIN CLIN TitleContract

Type PWS Section(s)

Base Period of Performance (60 months)0001 Contract Transition (120 calendar days included in the 60

month Base Period of Performance)

CR (no fee) Section C.1

0002 Hanford Site Benefit Plans CR (no fee) Section C.2

0003 Legacy Benefit Plans CR (no fee) Section C.3

0004 Infrastructure and Site Services CPAF Section C.4

0005 DOE Small Business Procurement Pre-Award Support CPAF Section C.5

0006 Usage-Based Services to be Provided to OHCs CPAF Sections C.6, H.75, and Attachments J-3.a and J-3.b

0007 Infrastructure Reliability Projects IDIQ Section C.7 and Attachment J-15

0008 DOE Small Business Procurement Post-Award Support and Additional Assignments in Accordance with PWS

IDIQ Section C.8


B.2. Cost-Plus-Award-Fee and Indefinite Delivery/Indefinite Quantity (IDIQ) type CLINs

Option 1 Period of Performance (24 months)1002 Hanford Site Benefit Plans CR (no fee) Section C.21003 Legacy Benefit Plans CR (no fee) Section C.31004 Infrastructure and Site Services CPAF Section C.41005 DOE Small Business Procurement Pre-

Award SupportCPAF Section C.5

1006 UBS to be Provided to OHCs CPAF Sections C.6 and H.76, and Attachments J-3.a and J-3.b



IDIQ Section C.8

Option 2 Period of Performance (36 months)2002 Hanford Site Benefit Plans CR (no fee) Section C.22003 Legacy Benefit Plans CR (no fee) Section C.32004 Infrastructure and Site Services CPAF Section C.42005 DOE Small Business Procurement Pre-

Award SupportCPAF Section C.5

2006 UBS to Be Provided to OHCs CPAF Sections C.6 and H.76, and Attachments J-3.a and J-3.b



IDIQ Section C.8

23

Section B Overview

Table B-2. Contract Cost and Fee(Table to be completed by Offeror and inserted by DOE at time of contract award)

CLIN CLIN Description Estimated Cost

Total Available

Fee Estimated Cost and

FeeBase Period of Performance (60 months)

0001 Contract Transition (CR, No Fee) [Proposed] N/A [Proposed]

0002 Hanford Site Benefit Plans (CR, No Fee) $210,478,156 N/A $210,478,156

0003 Legacy Benefit Plans (CR, No Fee) $243,706,562 N/A $243,706,562

0004 Infrastructure and Site Services (CPAF) [Proposed] [Proposed] [Proposed]

0005DOE Small Business Procurement Pre-Award Support (CPAF) [Proposed] [Proposed] [Proposed]

0006 UBS to Be Provided to OHCs (CPAF) [Proposed] [Proposed] [Proposed]

0007Infrastructure Reliability Projects (IDIQ) To be determined as Task

Orders are issued$192,500,000*

0008 DOE Small Business Procurement Post-Award Support and Additional Assignments in accordance with PWS (IDIQ)

To be determined as Task Orders are issued

$7,500,000*

UBS Reimbursement from OHCs (offset CLIN 0006) [-$ Proposed] N/A [-$ Proposed]

Total Base Period [Proposed] [Proposed] [Proposed]

24

Option Period 1 Period of Performance (24 months)

1002Hanford Site Benefit Plans (CR, No Fee) $86,840,258

N/A$86,840,258

1003 Legacy Benefit Plans (CR, No Fee) $100,380,725 N/A $100,380,725


1005 DOE Small Business Procurement Pre-Award Support (CPAF) [Proposed] [Proposed] [Proposed]


1007Infrastructure Reliability Projects (IDIQ) To be determined as Task Orders

are issued$77,000,000*

1008

DOE Small Business Procurement Post-Award Support and Additional Assignments in accordance with PWS (IDIQ)


$3,000,000*


Total Option Period 1 [Proposed] [Proposed] [Proposed]

Section B Overview

25

Option Period 2 Period of Performance (36 months)

2002 Hanford Site Benefit Plans (CR, No Fee) $140,933,249.47 N/A $140,933,249.47

2003 Legacy Benefit Plans (CR, No Fee) $154,912,558.40 N/A $154,912,558.40


2005 DOE Small Business Procurement Pre-Award Support (CPAF)

[Proposed] [Proposed] [Proposed]


2007Infrastructure Reliability Projects (IDIQ) To be determined as Task Orders

are issued$115,500,000.00*

2008

DOE Small Business Procurement Post-Award Support and Additional Assignments in accordance with PWS (IDIQ)


$4,500,000.00*


Total Option Period 2 [Proposed] [Proposed] [Proposed]

Total Contract Value (Transition Period, Base Period, Option Period 1, Option Period 2, and IDIQ Maximum Quantities) [Proposed] [Proposed] [Proposed]

* Amount shown for Estimated Cost and Fee under each of the IDIQ CLINs reflects the maximum quantity of suppliesand/or services the Government will acquire under the IDIQ CLIN (inclusive of any fee or profit)

Section B Overview

26

Section B Overview


Fee (CPAF CLINS 0004, 0005, 0006 series):• Available Award Fee may consist of up to 40 percent as

subjective award fee criteria, and the remaining balance is in objective PBIs for a total of 100 percent.

• No Base Fee under this Contract.

• Provisional Fee Payments are anticipated for both subjective award fee and objective performance incentives.

Task Orders (IDIQ CLINs 0007 and 0008 series):

• May be issued as Fixed-Price or Time and Materials underthe IDIQ CLIN(s).

• Minimum ordering guarantee for IDIQ CLINs is $25,000 for the full contract period of performance, including options.

• $400 million is the IDIQ maximum ceiling for the entireperiod of performance.


Section B Overview


B.10 Allowability of Subcontractor Feea. If the Contractor is part of a teaming arrangement, as defined in FAR Subpart

9.601(1) entitled, Contractor Team Arrangements, the team shall share in the

total fee as shown in Table B-2. Separate, additional, critical subcontractor fee is not an allowable cost under this Contract for individual team members, or for

a subcontractor, supplier, or lower-tier subcontractor that is a wholly-owned, a majority-owned, or an affiliate of any team member.

b. The subcontractor fee restriction in paragraph (a) above does not apply to members of the Contractor’s team that are: (1) small business(es); (2) Protégé

firms as part of an approved Mentor-Protégé relationship identified in the Contractor’s Diversity Plan as per the Section H clause, DOE-H-2046 entitled,

Diversity Program; (3) subcontractors under a competitively awarded firm-fixed price or firm-fixed unit price subcontract; or (4) commercial items as defined in

FAR Subpart 2.101, Definitions.

c. To the extent the Contractor relies on any of the exceptions in paragraph (b)

above, CO written concurrence that the exception applies must be obtained.


Section B Overview


B.12. Small Business Subcontracting Fee Reduction

• Fee may be reduced if the Contractor does not meet any or all subcontracting goals per the Section H clause entitled, Subcontracted Work, the Contractor’s Small Business Subcontracting Plan, and required Mentor-Protégé Agreements (evaluated at the end of each contract period).

Note: The prime contractor’s performance in these areas will also be evaluated on an annual basis via the PEMP and CPARS process.

• This clause was Identified Process Improvement of the EM HCA Charge for Increasing Small Business Involvement, to place emphasis on the Contractor’s performance in meeting approved small business subcontracting goals.

• The percentage goals established in the Section J, Attachment J-6, SmallBusiness Subcontracting Plan, will remain in effect for the duration of theContract.


Section B Overview


B.12. Small Business Subcontracting Fee Reduction

Below are the goals from Section L.9(k)(3), Table L-3

Small Business Category Small Business Goals

Small Businesses [Proposed]*

Veteran-Owned Small Business (VOSB) 3%

Service-Disabled Veteran-Owned Small Business (SDVOSB)

3%

HUBZONE 3%

Small Disadvantaged Business 5%

Women-Owned Small Business 5%

* The overall SB goal percentage of total subcontracted work shall be proposed by the Offeror and be consistent to the requirements to Section H clause entitled, Subcontracted Work. The small business subcategories may not necessarily add up to the overall percentage in the “Small Business” category, since some small businesses may not fall into any of the subcategories, while others may fall into more than one subcategory.



Section CPerformance Work Statement

Angie E. EnsunsaAcquisition Project Manager

Office of Hanford Acquisitions


Overview

• Provide support direct to DOE and its contractors.

• Cost-effective infrastructure and Site services.

• Performs as the Site integrator: Ensures interfaces with and between Site Customers

(DOE Offices and OHCs) is managed effectively, Encourages open and proactive communication, Collaboration, and Cooperation.

32

Work Breakdown Structure by CLIN

33

CLIN 0001


C.1 Contract Transition:• 120 calendar days (after NTP issued).

• Transition plan:

Due within 15 calendar days of NTP;

Approach to transition of services and work identified in the Contract;

Activities necessary for the Contractor to assume full responsibility for the Contract no later than 120 days after NTP; and

Addresses other activities and deliverables specified in the Contract that require DOE approval prior to completion of transition.


CLINs 0002 and 0003

C.2 Hanford Site Benefit Plans• The Contractor will have responsibilities regarding sponsorship,

management and administration of pension and other benefit plans for active employees who are eligible to participate in the Hanford Site Benefit Plans and retired Contractor employees.

• There is no fee associated with pension/benefit contributions.• Specifics requirements associated with these responsibilities are found

in Section H.

C.3 Legacy Benefit Plans• The Contractor will have responsibilities regarding sponsorship,

management and administration of pension and other benefit plans for retired Contractor employees associated with work at different DOE Sites that are now closed (e.g., Fernald in Ohio).

• There is no fee associated with pension/benefit contributions.• Specifics requirements associated with these responsibilities are found

in Section H.

35

CLIN 0004

C.4 Infrastructure and Site Services:

• Provide services to clean up contractors to accomplish the Hanford Site mission, such as: Fire and Emergency Preparedness,

Records and information management, and

Development of a Site-wide work break down structure for lifecycle reporting and baseline management.

• Infrastructure maintenance and repairs, such as utilities and roads.

• Protect Category I-IV Special Nuclear Material and other security interests on the Hanford Site.

• Modernizing IT infrastructure.

• Workforce safety training (HAMMER).

36

CLIN 0005

C.5 DOE Small Business Procurement Pre-Award Support:• Year one of the contract:

Submit a Small Business Prime Contract Acquisition Plan for DOE approval.

Meets the requirements of FAR 7.105,

Identifies meaningful work scope in the amount of $55 million annually from the HMESC PWS CLIN 0004.

Once the acquisition plan is approved by DOE, the scope and contract value will be deducted from the contract.

Develop a Small Business Procurement Support model and submit to DOE for approval.

Shall be on a non-inherently governmental function basis in accordance with FAR 7.5, Inherently Governmental Functions.

• Year two of the contract:

Pre-award and up to award.

Work scope will be transitioned to small business as primes to DOE.

37

CLIN 0006

• UBS are a pass-through cost for the OHCs.

• The actual scope of CLIN 0006 is contained in CLIN 0004 and CLIN 0006 is set up to facilitate appropriate segregation of cost.

• Accounting for the obligation of DOE funds and cost reimbursement for UBS is described in Section B, Supplies or Services and Prices/Costs, under the UBS To Be Provided to OHCs CLINS.

C.6 Usage Based Services (UBS):

38

CLIN 0007

C.7 Infrastructure Reliability Projects:

• Develop a Reliability Project Investment Portfolio (RPIP) in Section C.4.11.7.

• The RPIP is work related to updating, upgrading or replacing elements of the fixed infrastructure and removing and/or dispositioning newly abandoned or replaced systems.

• A list of the Infrastructure Reliability Projects is included in Section J, Attachment J-15. (also refer to the Infrastructure and Services Alignment Plan brochure within Site tour package to be posted on the EMCBC

HMESC website)

• DOE will issue task orders under the IDIQ CLINs as stated in Section B.2, Type of Contract, to execute these projects.

39

CLIN 0008

C.8 DOE Small Business Procurement Post Award Support and Additional Assignments:• Provide post award procurement support to DOE for the

awarded small business DOE prime contracts awarded under CLIN 0005.

• Additional Assignments:

Task Orders may be issued for the additional assignments in accordance with the PWS within this CLIN.

Task Orders may cover emergent or currently undefined workscope that is within the general scope of contract.

DOE will issue task orders under the IDIQ CLINs as stated in Section B.2, Type of Contract.

40

J-3.a and J-3.b

Hanford Site Services and Interface Requirements Matrix:• Performed in accordance with Section H Clause, Hanford Site

Services and Interface Requirements Matrix.

• J-3.a is included in the current Hanford Site Contracts.

• HMESC shall perform to J-3.a until new contract(s) is awarded.

• New Hanford Site contracts will contain J-3.b.

• Service provider listed in the service category is responsible for providing the scope in that category to the Hanford Site.

• Services are defined as either base service or pay for service

• Site services are to be provided in a manner that is in the best interest of the government.

41

J-3 Definitions

42

J-3.a Sample

Interface Number

Interface Title Interface Type Cost Type Service Type HMESC PRC TOC WTP RCCC Other

Contracts

2

Hanford Site Interface Management Plan

Information Direct-Funded Interface Receive

input from

site

contractors

Deliver

input to

HMESC

Deliver

input to

HMESC

Deliver

input to

HMESC

Deliver

input to

HMESC

Deliver

input to

HMESC

Scope/Cost Allocation

Service Description

Hanford Site Interface Management Plan is the controlling agreements that ensure effective control of technical, administrative, and regulatory interfaces.

HMESC shall develop and maintain the Hanford Site Interface Management Plan.

HMESC shall collaborate with the Hanford Site contractors/users on the Hanford Site Interface Management Plan.

PRC, TOC, and HMESC shall sign the Hanford Site Interface Management Plan.

Usage-Based Services

N/A

Direct-Funded Services

HMESC bears the cost burden of program administration. Hanford Site contractors/users bear internal implementation costs.

Return to top

43

J-3.b Sample

Service

Number Service Title Interface Type HMESC OHCs Other Site Users

2

Infrastructure and Services Alignment

Plan (ISAP) and the Annual Forecast of

Services and Infrastructure (including

the Hanford Site Services and Interface

Requirements Matrix)

Information Receive input and

provide service Provide input Provide input

Service Description

ISAP is the strategic plan for right sizing the infrastructure to support the future Hanford Site mission, and the Annual Forecast of Services and Infrastructure

is a projection of needed utilities, services, and infrastructure from OHCs.

DOE will evaluate contractor/user input prior to approval. The plan will be approved by DOE.

Each OHC identified as a service provider shall update Service Delivery Documents (SDD) for provided Site services per the J-3 table.

OHCs bear internal implementation costs.

Direct Funded Services

Develop, maintain, and update an ISAP and the Annual Forecast of Services and Infrastructure, which includes the costs for services. Proposed

changes in service providers shall include a justification and a plan forward.

Solicit input from OHCs for the ISAP and the Annual Forecast of Services and Infrastructure, including projection of need for services and proposed

performance metrics/controlling agreements for the service provider.

Provide program administration and updates.

Basic Service Service Type Clarifications/Exceptions

ISAP and the Annual Forecast of Services and Infrastructure

(including the Hanford Site Services and Interface

Requirements Matrix)

Interface

44

Section H

Contractor Human Resource Management (CHRM) Requirements

CHRM Overview

Joyce Gilbert/Cindy OliverRL Contractor Industrial Relations



Section H, CHRM Overview


CHRM Clauses in the Draft RFP:

H.2 No Third Party Beneficiaries

H.3 Definitions

H.4 Workforce Transition and Employee Hiring Preferences Including through Period of Performance

H.5 Employee Compensation: Pay and Benefits

H.6 Special ProvisionsApplicable to Workforce Transitionand Employee Compensation: Pay and Benefits

H.7 Workforce Transition and Benefits Transition:Plans and Timeframes




CHRM Clauses in the Draft RFP:

H.8 Post Contract Responsibilities for Pension and Other Benefit Plans

H.9 Labor Relations

H.10 Workforce Restructuring

H.11 Labor Standards

H.13 Risk Management and Insurance Programs

H.14 Implementation of the Hanford Site Stabilization Agreement (HSSA)




H.4 Workforce Transition and Employee HiringPreferences Including Through Period of Performance• The Department has always had an extensive list of hiring preferences

for individuals employed by a predecessor site contractor.

• During Transition: Right of first refusal for service employees (FAR 52.222-17). Right of first refusal for qualified non-managerial Incumbent

Employees for positions substantially equivalent to positions for which they are currently employed.

Preference in Hiring for Incumbent Employees who meet the qualification requirements for a vacancy in non-managerial positions and who have been identified by their employer as being at risk of being laid-off due to transition to a new Contractor.

• Through Period of Performance – Preference in Hiring: Former employees of MSA and MSA’s preselected teaming

subcontractors. Former employees of other DOE nuclear contractors.


H.5 Employee Compensation: Pay and Benefits• Incumbent Employees

Pay: Equivalent base pay for at least the 1st year of the contract.

Benefits: Hanford Site eligible employees shall remain in their existing benefit plans (Pension, Health and Welfare, and Savings).

• Non-IncumbentEmployees Market based total pay and benefits, including medical and

retirement plans.

• Key Personnel (9 people maximum)

Top Contractor Official: Salary Compensation requires annualDOE approval; total reimbursable compensation is subject toOffice of Federal Procurement Policy (OFPP) Cap.

Other Key Personnel: Salary Compensation approval required attime of Contract award and when key personal are replaced; base salary must be below that of Top Contractor Official.






H.5 Employee Compensation: Pay and Benefits• Pension and Other Benefits

CurrentlyMSA sponsors both a Defined Benefit Pension Plan (DB Plan) and a Defined Contribution Pension Plan (DC Plan).

DOE Policy – “If you are in, you are in”

Hanford Site Pension Plan (HSPP) eligible employees shall remain in their existing pension plans.

Non-HSPP Eligible Employees shall receive a benefits package that provides for market-based retirement and medical benefit plans that are competitive with the industry from which the Contractor recruits its employees and in accordance with Contract requirements.



H.5 Employee Compensation: Pay and Benefits

• Pension and other benefits: Contractor shall become a sponsor of the legacy Fernald Welfare

Benefits Plan with responsibility for management and administration of the Plan.

The Department is currently reviewing the possibility that the HMESC Contractor will sponsor additional Legacy Site Post Retirement Benefit Plans.

• Contractors will need expertise in the Employee Retirement Income Security Act (ERISA), e.g., legal and actuarial counsel.

51

H.6 Special Provisions Applicable to Workforce Transition andEmployee Compensation: Pay and Benefits

• Service Credit: Incumbent Employees

Service Credit for Leave and other FringeBenefits(e.g., severance).

Length of service with MSA and pre-selected Teaming Subcontractors carries over for accruing leave.

• Service Credit: Non-Incumbent Employees

Service Credit for Leave shall be compliant with applicable law.

• Allowable Salary for Key Personnel

Within 20 days after NTP, the Contractor shall submit DOE Form 3220.5, “Application for Contractor Compensation Approval” to the Contracting Officer for each key personnel position listed in Clause H.49.




Increased Transition Oversight


New Requirements for Transition Plans Implementation of CHRM Requirements• The Contractor shall provide detailed Plans for “Workforce Transition” and “Benefits

Transition” as described in Section H, Clause H.7.• The Plans shall include a description of the Contractor ’shuman resource management

programs consistentwith requirements described in Section H, Clauses H.4 through H.7.• Highlights of requirements for Transition Plans to be submitted for Contracting Officer

approval: Compliance with right of first refusal and hiring preferences included in Clause H.4,

Workforce Transition and Employee Hiring Preferences through Period of Performance.

Benefit Transition Plan describing the Contractor’s plans and procedures to comply with Clauses H.5, Employee Compensation: Pay and Benefits, and H.6, Special Provisions Applicable to Workforce Transition and Employee Compensation: Pay and Benefits.

Description of plan to incorporate multiple (two) unions with separate bargaining agreements.

Provide list of Contractor personnel responsible for development of Transition Plans and contact information.

Description of transition agreements Contractor intends to enter into with MSA to ensure compliance with Clause H.4.

Provide DOE with the Communication Plan the Contractor will engage in with prospective employees, and any labor organizations.


H.7 Workforce Transition and Benefits TransitionCritical activities!

• Workforce Transition Plan and Benefits Tranisition Plan Know who will be responsible for these activities immediately upon

Contract Award. Reporting Requirements to CO – 10 days to 120 days following NTP.

• Make certain to plan and have appropriate resourcesavailable.




H.9 Labor Relations

• MSAcurrently has twoCollective Bargaining Agreements (CBA) Hanford Guards Union (HGU); and Hanford Atomic Metal Trades Counsel (HAMTC).

• MSA is signatory to a Project Labor Agreement titled “Hanford Site Stabilization Agreement” For constructionwork covered by the Construction Wage Rate

Requirements Statute (formerly known as the Davis-Bacon Act[DBA]); further discussed in Clause H.14.

• Even where there is no CBA, Contractor must respect employeesright to organize and understand requirements of National LaborRelations Act.

• Submit economic parameters for Contracting Officer approval prior to negotiations. Economic parameters are costs a Contractor is seeking for an

allowability determination.www.energy.gov/EM 55





H.10 Workforce Restructuring

Requirements are set forth in this clause should theContractor be required to conduct workforce restructuring.




H.11 Labor Standards

• This Contract is subject to the Service ContractLabor Standards (SCLS) Statute (formerly known as the Service Contract Act of 1965).

• Construction activities are subject to the Construction Wage RateRequirements Statute(formerly known as the DBA).

• Because the Contract is primarily for Services, the Contractormust submit work packages to CO (or designee as directed) for adetermination as to whether a particular project is covered byDBA.

• The Contractor shall immediately notify the CO or designee of all labor standard issues such as labor standard violations, Department of Labor investigations, etc.



H.13 Risk Management and Insurance Programs

• Basic Requirements:

Maintain commercial insurance or a self-insured program (i.e., any insurance policy or coverage that protects the contractor from the risk of legal liability for adverse actions associated with its operation, including malpractice, injury, or negligence) as required by the terms of the Contract.

Types of insurance include automobile, general liability, and other third-party liability insurance.

Contractor shall submit copies of all insurance policies or insurance arrangement to the CO no later than 30 days after the purchase date.

58

Section H, CHRM OverviewSection H, CHRM OverviewSection H, CHRM Overview


H.14 Implementation of the Hanford Site Stabilization Agreement

• MSA is signatory to a Project Labor Agreement titled “Hanford Site Stabilization Agreement”.

For construction work covered by the Construction WageRate Requirements Statute (formerly known as the Davis-Bacon Act [DBA]) – further discussed in Clause H.14.

• Clause H.14 applies to employees performing work under Contracts (or subcontracts) subject to DBA requirements.

• Contractors and subcontractors at all tiers who are party to an agreement(s) for construction work with a Local Union having jurisdiction over DOE construction work performed at the Hanford Site, shall become signatory to the HSSA and abide by its provisions.

59

15 Minute Break




Section HSpecial Contract Requirements



Section H


Section H Overview


H.49 DOE-H-2070, Key Personnel:• The Offeror shall propose four required key personnel. Only one

individual may be proposed for each key personnel position.

• The required key personnel positions include: Program Manager, Manager of Safeguards and Security and Emergency and First Responders, Chief of Hanford Patrol, and Chief of Hanford Fire.

• In addition, the Offeror may propose up to five other key personnel positions that are critical to the overall performance of the Contract.

• The commitment for key personnel positions is two years.

• Contract fee reductions for changes to key personnel within two years of being placed in the position are $500,000 for the Program Managerand $100,000 for other key persons, notwithstanding the approval ofthe Contracting Officer.


Section H Overview


H.53 Subcontracted Work:

• The Small Business Subcontracting Plan shall identify timely, discrete, and meaningful scopes of work that can be awarded to small business concerns.

• Updated definition for meaningful work was developed in coordination by EM and EFCOG, and was an Identified Process Improvement of the EM HCA Charge for Increasing Small Business Involvement:

“Meaningful work is work that is important to the performance of the technical approach defined by the prime contractor. It is characterized by strong technical content (e.g., discrete and distinct technical or programmatic scopes of work) and contributes to the successful achievement of DOE’s goals. It should have a performance-based outcome that directly contributes to the overall contract outcome(s).”

Small Business Subcontracting Requirements and Contract Execution

Subcontracting: At least 40% of total Contract Value at Contract Award (excluding IDIQ)

Subcontracting to Small Businesses: At least 25% of total Contract Value at Contract Award (excluding IDIQ)


Section H - RFP Overview


H.60 Partnering: The Government proposes to form a cohesive partnership with the Contractor - trust, dedication to common goals, and an understanding and respect of each other's expectations andvalues.

• Teambuilding environment that fosters better communication and problem solving, and a mutual trust between the participants.

• The partnership strives to draw on the strengths of each organization in an effort to achieve a quality project done right the first time, within budget, and on schedule.

• Participation in the partnership will be totally voluntary by theparties.


Section H - RFP Overview


H.83 Organizational Conflict of Interest Between Hanford Site ContractsPerformance of the Contract will be limited throughout the Contract period of performance to a Contractor that is not concurrently performing the Plateau Remediation Contract (PRC), Tank Farms Operations Contract (TOC), Waste Treatment and Immobilization Plant (WTP) Contract, or other future Hanford contracts with those work scopes. This Contract limitation applies to any teaming member(s) as described in FAR Subpart 9.6, Contractor Team Arrangements, preselected subcontractor(s), parent companies or affiliates of the teaming member(s), or preselected contractor(s), concurrently performing the PRC, TOC, WTP Contract, or other future Hanford contracts with those work scopes.



Section KRepresentations, Certifications, and Other

Statements of Offerors




Section K Overview


Section K - Representations, Certifications, and OtherStatements of Offerors:

• Offerors shall completeand submit all of the fill-in information provided in Section K.

• K.5, FAR Certification Regarding Facility Clearance – Foreign Ownership, Control or Influence (FOCI) Information, is applicable to all Offerors in terms of either new FOCI registrations or documentation of the existing facility clearance. Specific FOCI instructions are included in Section L.



Section LInstructions, Conditions, and Notices to

Offerors




L.8 DOE-L-2001, Proposal Preparation Instructions– General

(a)Definitions

(1)Offeror. The term “Offeror”, as used in this Section L, refers to the single entity submitting the proposal. The Offeror shall be a legal entity separate from its parent organization(s), whose sole purpose is to perform the Contract, in accordance with the clause DOE-H-2015 entitled, Separate Corporate Entity. The Offeror may be a single corporation or a “Contractor team arrangement” as defined in FAR 9.601, for example, a limited liability company, limited liability partnership, joint venture, or similar entity or arrangement. If the Offeror is a newly formed entity, it must be legally established on or before the date for submission of proposals. (See Volume I instructions regarding any requirement for a performance guarantee agreement.)


Section L Overview


L.8 DOE-L-2001, Proposal Preparation Instructions–General(2)Critical subcontractor. A “critical subcontractor” is a subcontractor performing work within PWS sections:• C.4.3, Safeguards and Security, who is anticipated to perform 30 percent or more of the

total estimated cost of this work over the contract period.

• C.4.4, Emergencies and First Responders, who is anticipated 30 percent or more of the total estimated cost of this work over the contract period.

• C.4.6, Information Technology and Management, who is anticipated to perform 30 percent or more of the total estimated cost of this work over the contract period.

• Additionally, proposed subcontractors with an estimated value more than $400 million over the contract period (including option years) under the Infrastructure and Site Services CLINs are considered to be a critical subcontractor.

• A critical subcontractor is also any subcontractor that will perform work that is incorporated into the Offeror’s Technical Approach and that the prime Offeror considers critical to enhance its team’s technical approach, experience, or ability to meet delivery requirements.

• Critical subcontractors count toward fulfillment of the Section H clause entitled, Subcontracted Work, requirement and other small business goals in this Contract.


Section L Overview


Volume II – Technical and Management Proposal:

Technical Approach (100 page limit)

• Includes the technical approach to accomplish the PWS objectives, with emphasis in the areas of Utilities and Infrastructure, Safeguards and Security, Emergencies and First Responders, Information Technology and Management, Integration, and Interface Management.

• Contractor Human Resource Management understanding and approach.

• Subcontracting Approach and Commitment to Small Business Utilization.


Section L Overview


Volume II – Technical and Management Proposal

Key Personnel and Organization (20 page limit)

• The Offeror shall propose four required key personnel, and may propose up to five other key personnel. Four required key personnel:

1. Program Manager,2. Manager, Safeguards and Security and Emergency and First

Responders,3. Chief of Hanford Patrol, and4. Chief of Hanford Fire.

• Completed Attachment L-2 Key Personal Standard Resume Format (4 page limit) and signed Commitment Letters not included in 20 page limitation.

• Includes key personnel oral presentation as a group and Program Manager interview.


Section L Overview


Volume II – Technical and Management Proposal:

Experience

• Completed Attachment L-3, Past Performance and Experience Reference Information Form (7 page limit).

• Completed Attachment L-11, Work Performance Matrix.

• Written content for the Experience evaluation factor is limited to Attachment L-3 and Attachment L-11.

NOTE: DOE is strongly considering removing the Experience evaluation factor in the Final RFP. Industry is requested to provide input during one-on-one sessions and written comments to DOE by January 8, 2018.


Section L Overview


Volume II – Technical and Management Proposal:Past Performance

• Completed Attachment L-3 Past Performance and Experience Reference Information Form (7 page limit).

• Completed Attachment L-5, List of Contracts Terminated for Default or Convenience.

• Completed Attachment L-10, List of DOE Contracts.

• Completed Attachment L-11, Work Performance Matrix.

• Past Performance Consent Statement(s).


Section L Overview


LIST OF SECTION L ATTACHMENTS


Attachment L-1 Performance Guarantee Agreement Attachment L-2 Key Personnel Standard Resume FormatAttachment L-3 Past Performance and Experience Reference Information Form Attachment L-4 Past Performance Cover Letter and QuestionnaireAttachment L-5 List of Contracts Terminated for Default or Convenience Attachment L-6 Cost Proposal WorksheetsAttachment L-7 Consolidated Direct Cost SchedulesAttachment L-8 Cost Assumptions Attachment L-9 Offeror’s Proposed Accounting System Information Attachment L-10 List of DOE ContractsAttachment L-11 Work Performance MatrixAttachment L-12 Small Business Subcontracting Tables

Section L Overview



Section LVolume III DRFP Cost Model

andAlternate Cost Model

Ben LindholmOffice of Hanford Acquisitions


Section L - Overview

L.16 Proposal Preparation Instructions, Volume III DRFP Cost Model– Cost/Price Proposal

• The Offeror shall submit completed Tables B-2, B-3, B-4a, B-4b and B-4c (Section B) in Vol. I consistent with the completed Attachment L-6 - Cost Proposal Worksheets and Attachment L-7 - Consolidated Direct Cost Schedules submitted as part of Vol. III.

• The Offeror shall utilize the binding assumptions (e.g., volume and scope assumptions along with collective bargaining agreements and Government Furnished Costs [GFC]) included within Attachment L-8 - Cost Assumptions Table when preparing its cost proposal.

• The Offeror shall use the organization of work set forth in the PWS as the Work Breakdown Structure (WBS). The Offeror shall not propose its own work breakdown structure (including adding to or aggregating PWS elements).

77

Section J Attachment J-17


The purpose for the J-17 Contract PWS and WBS Crosswalk Tables is to provide an understanding to how the HMESC PWS, Proposal WBS, and Contract WBS numbering structures are relate to each other, and to help Offerors in the development of their estimates and population of the estimating flat file within L-7.

• HMESC PWSRepresents the structure of the HMESC performance work scope at the Level 4 PWS. Proposed costs will be submitted at the level 4 PWS as identified in the L-6.

• HMESC Proposal WBS

Represents the structure that Offeror shall use to build proposal cost estimates.

• HMESC Contract WBS

Represents the structure that will be used in establishing the contract Performance Baseline for the execution of the PWS.

• HMESC PWS to WBS Crosswalk

Shows the relationship between the CLINs, PWS, Proposal WBS, and the future Contract WBS.


Section L Overview


L.16 Proposal Preparation Instructions, Volume III DRFP Cost Model –Cost/Price Proposal• The Offeror, including each team member and critical subcontractors,

shall provide Volume III narrative support sufficient to explain thedevelopment of costs/prices proposed; the rationale and basis for the data provided; and the basis for the reasonableness of the proposed costs/prices.

• The Offeror shall provide a Basis of Estimate (BOE) thoroughly documenting estimates consistent with the Offeror’s Technical and Management Proposal, at the lowest proposal WBS as indicated in Attachment L-6. A BOE description shall be provided corresponding to the PWS and shall be a standalone documentwithin Volume III.

• The Offeror’s Cost and Fee Proposal must be mathematically correct with full traceability and consistency between Attachments L-6 and L-7, BOEs, and Technical Proposal.


Section L Overview


L.16 Proposal Preparation Instructions, Volume III DRFP Cost Model– Cost/Price Proposal:

• CLINs 0004, 1004, and 2004 – Infrastructure and Site Services: These CLINs cover the costs and fee associated with the work scope defined in Section C.4. A portion of the C.4 work

scope includes Usage Based Services (UBS). UBS are services provided in accordance with Section J, Attachment J-3.a or J-3.b, and in accordance with the PWS, Section C.6.

• The unique nature of this solicitation accumulates work in three different charging activities (Direct/Ready-to-Serve [RTS], Self-Consumed, and OHC UBS). In order to facilitate and streamline proposal preparation, placing cost and fee within the applicable charging activities,

the Offeror shall propose costs for the entire scope of work contained within the PWS, Section C.4. Once the proposed costs are computed, the Offeror shall use the allocation percentages, as indicated in the allocation worksheet in Attachment L-6, Allocation Spreadsheet, tab as well as the additional information in i, ii, and iii below to compute the cost and fee for completion of Section B.

i. Direct/RTS – The Offeror shall not propose an award fee exceeding 6.5 percent. ii. Self-Consumed – The Offeror shall not propose an award fee exceeding 6.5 percent. iii. OHC UBS – The costs and fee will be transferred to CLINs 0006, 1006, and 2006 and the

Offeror shall not propose an award fee exceeding 5 percent.


Section L Overview


L.16 Proposal Preparation Instructions, VolumeIII DRFP Cost Model –Cost/Price Proposal:

• Information on labor rates is provided in Section L, at L.16(g)(6). The Offeror shall utilize the DOE Minimum Average Base Rates located in the Labor Rates Tables entitled, Exempt Labor Rates, Non-Exempt Labor Rates, HAMTC Labor Rates, and Guard Labor Rates, in Attachment L-7 for proposal preparation. The DOE provided labor rates in Attachment L-7 reflect actual labor rates for the identified labor categories, escalated to GFY 2019 dollars. The DOE provided labor rates do not include fringe benefits.



L.16 Proposal Preparation Instructions, VolumeIII DRFP Cost Model – Cost/Price ProposalFringe Benefits:• The Offeror shall use a minimum fringe benefit percentage of 32.7 percent for

current labor positions currently employed by the site. The DOE provided fringe benefits include Paid Time Off (PTO) and payroll taxes. PTO consists of vacation, sick, holiday, and site specific paid absences, more

specifically 80 hours of holiday site closure pay, site specific paid absences (jury duty, family death, weather closures/releases, etc.), and the annual raise effect on the inherited absence liability pool. The PTO rate is in accordance with the HSSA, HGU, and HAMTC agreements and the proposed non represented paid sick and vacation compensation packages.

Payroll taxes consist of employer’s portion of Federal Insurance Contribution Act (FICA), Medicare Payroll Tax, Federal Unemployment Tax Act (FUTA), and State Unemployment Tax Act (SUTA).

• Other fringe benefits including the Hanford Site Pension Plan, Hanford Site Savings Plan, and Hanford Employee Welfare Trust medical benefits are Government Furnished Costs (GFC). GFCs for these fringe benefits are provided in CLINs 0002, 1002, and 2002.

82


L.16 Proposal Preparation Instructions, Volume III DRFP Cost Model –Cost/Price Proposal

Attachment L-7, Estimating Flat File:

• Allows for the ability to provide estimated cost lower than the required HMESC Proposal WBS.

• Intended to be populated with cost information from estimating software.• Provides the ability to complete the worksheets from one data source.• Allows for full reconciliation and traceability between the completed L-6

and L-7 cost worksheets and estimated costs data.• Detailed instructions for population of the estimating flat file are provided

in L.16 (h),(2),(vi).

83

Section L Overview


L.16 Proposal Preparation Instructions, Volume III DRFP Cost Model –Cost/Price ProposalHistorical Reference (HREF):

• HREF consists of representative historical data for FY 16. HREF includes a scope description for the historical costs. The historical costs reflect the Hanford Site funding levels for FY16 and are not representative of future funding levels or the Tri-Party Agreement consent orders, consent decrees, and settlement agreements between the DOE and federal and state regulatory agencies for the Hanford Site.

• With exception to PWS C.4.3, Safeguards and Security, HREF is included in this solicitation as reference material and is posted to the EMCBC HMESC Acquisition website’s Documents Library for use by the Offerors. PWS C.4.3, inclusive of lower levels, is OUO. Requires submission of a completed Non-Disclosure for Access to DOE HMESC Solicitation CUI form and must be authorized by the CO.


Alternate Cost Model Overview

The alternate cost model is intended to streamline the cost proposal preparation and submission process by:

• Only requiring Offerors to submit a bottoms-up estimate and supporting documentation for the first year of costs, for the static scopes of work utilizing the Government provided out-year cost profile.

• Reducing the L-6 and L-7 Cost Worksheets tables by utilizing the comprehensive estimating flat file.

• Providing additional historical cost reference data for the static scopes of work.

Having costs down to the resource level with quantities for each corresponding WBS contained within the PWS.

85

Alternate Cost Model Overview

• Items to be included with the alternate cost model:

Updated Section L, L-16 cost proposal instructions - with a table identifying the static PWSs.

Historical Cost Reference Data documents for static PWS estimate package.

Revised L-6 and L-7 Cost Worksheets. BOEs are only required for the first year costs of the identified static scopes of work.

Non-static scopes of work still require Offerors to provide BOEs and bottoms-up estimates for the 10 years of costs.

• Looking Forward:

December 13, 2017, discussions on the alternate model during one-on-ones.

January 19, 2018, Offerorsprovide input on both the RFP and alternate cost models.

In advance of the final RFP, DOE will provide clarification on the cost model to be included in the final RFP.

86


Section MEvaluation Factors for Award




M.7 DOE-M-2011, Relative Importance of Evaluation Factors:The relative importance of the evaluation factors for the Technical andManagement Proposal are listed below.

(1) Technical Approach(2) Key Personnel and Organization(3) Experience(4) Past Performance

Technical Approach is more important than Key Personnel and Organization; Technical Approach and Key Personnel and Organization are significantly more important than Experience and Past Performance. Experience and Past Performance are equal in importance.

The evaluation factors for the Technical and Management Proposal (Volume II), when combined, are significantly more important than thetotal evaluated price (Volume III).


Section M Overview


Section M - Overview

Evaluation Factors Order of Importance

1 Technical Approach (includes Subcontracting Approach and

Commitment to Small Business Utilization)

2 Key Personnel and Organization

3 Experience

4 Past Performance

NOTE: DOE is strongly considering removing the Experience evaluation factor in the Final RFP. Industry is requested to provide input during one-on-one

sessions and written comments to DOE by January 8, 2018.

89

M.9 DOE-M-2012, Basis for Award:The Government intends to award one contract to the responsible Offeror whose proposal is determined to be the best value to the Government. The evaluation factors for the Technical and Management Proposal will be adjectivally rated. The Cost/Price evaluation factor will not be rated, however the evaluated price will be used in determining the “best value” to the Government. The Government is more concerned with obtaining a superior Technical and Management Proposal than making an award at the lowest evaluated price. However, the Government will not make an award at a price premium it considers disproportionate to the benefits associated with the evaluated superiority of one Offeror’s Technical and Management Proposal over another. Thus, to the extent that Offerors’ Technical and Management Proposals are evaluated as close or similar in merit, the evaluated price is more likely to be a determining factor in selection for award.


Section M Overview


Acquisition Schedule


Details for this procurement can be found at the below website links.

DOE Acquisition Forecast:https://energy.gov/osdbu/acquisition-forecast

http://www.energy.gov/osdbu/downloads/acquisition-forecast-download

List of DOE EM Major Procurements currently being competed:

https://www.energy.gov/em/downloads/em-major-procurements


https://energy.gov/osdbu/acquisition-forecast

http://www.energy.gov/osdbu/downloads/acquisition-forecast-download

https://www.energy.gov/em/downloads/em-major-procurements

Questions?


Questions?

Thank you for attending!
